The state of panic in Washington over corporate tax avoidance is nearing code red, and Canada’s beloved Tim Hortons Inc. is on the cusp of being dragged into the hoopla.
On Sunday the national coffee chain announced it is in talks with private equity firm 3G Capital Management, which owns fast-food giant Burger King, about a possible merger. But any deal, should one materialize, won’t be a plain vanilla takeover. There are no synergies at play here. The reason these two firms would combine is simple and straightforward: Burger King wants to lower its tax bill.